Crypto Expert Who Called 2022 Market Crash Warns Against Bitcoin

A well-known crypto analyst who accurately predicted the market collapse in 2022 now warns that Bitcoin BTC/USD perhaps close to a local peak.

What happened: Pseudonymous analyst Capo believes that some indicators suggest that Bitcoin could face a pullback in the near future. The analyst, known for his precise market calls, raised concerns about Bitcoin’s current trajectory.

In a recent post on Telegram, the crypto expert highlighted factors such as excessive bullish sentiment and declining momentum as signs that a correction could be imminent.

Bitcoin has recently seen a significant recovery, surpassing $37,000 after a prolonged bear market. However, the analyst warns that the asset’s strong rally could run out of steam, leaving it vulnerable to short-term declines. Capo argues that traders should exercise caution and prepare for potential volatility.

“I’ve still been out of the market for a few weeks now. At this point, it doesn’t matter if Bitcoin hits $98,000, $99,000, or goes above $100,000. The local top could come at any time, and this move could be fully traced,” Capo said in the message.

Capo outlines several reasons why he believes a market correction is likely, including the fact that the pro-crypto U.S. president-elect Donald Trump will not take office until January 20.

Capo shared some of the reasons why he is cautious about the Bitcoin movement.

Also read: Robert Kiyosaki: “Trump will make America rich again by being the first Bitcoin president”

“The feeling is extremely optimistic here. Retail is accumulating massively, imitating memecoins. The memecoin rally seems too extended, and that’s unhealthy. A sharp correction is long overdue and will likely affect the entire market. Trump is still not in power. The Democrats still govern the country and, although they claim that the transfer of power would be “smooth and peaceful”, they are already trying to provoke a big war. In my opinion, this is a desperate attempt to apply martial law and/or leave Trump in a complicated position,” Capo said in his message.

Capo added: “Additionally, the US government holds 208,109 BTC (currently $20.15 billion). They recently obtained permission to sell Silk Road Bitcoin, likely through auctions or progressive sales. Honestly, it wouldn’t be surprising if they did this to drive down BTC prices and make the next administration look bad – or just to make sure they don’t leave those BTC behind so they can use them.

“Many altcoins are showing weakness and testing major levels as resistance. It’s mostly BTC and memecoins, which is never a good sign. I’m not ruling out a few final altcoin pumps, but if my thesis is correct, they could lose 60-80% over the next few weeks,” the analyst concluded.

Why it’s important: Despite the cautious outlook, Bitcoin remains a dominant force in the cryptocurrency market, with its supporters highlighting its long-term potential as a hedge against inflation and economic uncertainty. Institutional adoption and favorable regulatory developments continue to support the broader bullish scenario.

For investors, this latest warning is a reminder of the volatility inherent in the crypto market. Although Bitcoin has already defied expectations, understanding market dynamics and preparing for fluctuations is essential to navigating the space.

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This content was partially produced using AI tools and was reviewed and published by Benzinga editors.